FLINT, MI – The Flint School District is still awaiting approval for a $15.8 million loan in 2014 that would enable the district to have enough money to pay its bills for the rest of the school year.

The Michigan Department of Treasury said it has not approved Flint’s request to borrow against its state aid.

“The department has concerns about the loan amount being discussed as well as potential uses of loan proceeds,” Treasury Spokesman Terry Stanton wrote in a recent email to The Flint Journal. “Treasury (and MDE) is working with the district to address its financial situation.”

The Flint Journal could not reach district official for comment because the business office is closed until Jan. 6.

The loan would be in addition to $5 million that was borrowed against the state aid in August.

Acting Chief Financial Officer Jawun Nelson previously said the district can borrow up to $35 million per year, which is between 40 and 50 percent of its annual state aid.

Part of correcting one of those deficiencies, is projecting district spending on a month to month basis. In doing so, the district discovered the amount borrowed earlier this year was not sufficient.

"This puts us in a position that we will have the cash flow to finish out the year," Nelson previously said about why the district needs the $15.8 million loan.

The district’s general fund is in a $10.4 million deficit and also has several other funds that accumulated an $8.6 million deficit.

The $8.6 million is what Flint still owes for misspending money designated for the Genesee Area Skill Center.

“MDE and Treasury are working with Flint schools on a (deficit elimination plan),”Bill DiSessa, Michigan Department of Education spokesman, wrote in an email to The Flint Journal. “All there is to say right now.”